Indian hot dip galvanized (HDG) export activity has improved slightly with buyers from the Gulf region returning, supported by stray deals from Africa, but prices posted only limited increases, which means that the pressure remains, SteelOrbis learned from trade and industry circles on Thursday, December 8.
Ex-India Z220-240 HDG prices are largely reported at $830-840/mt FOB, up by $10/mt over the past week and one deal has been heard at last week’s levels of $820-830/mt FOB. As a result, the reference price for Z120 coils from India, which are less popular nowadays, is assessed at $730-750/mt FOB, also up by $10/mt over the past week.
According to the sources, realizations from sales in the Gulf have remained higher with one trade for 8,000 mt for Bahrain reported at around $830-840/mt FOB.
Another mill reported a trade for 12,000 for the UAE at $830/mt FOB. However, the same mill concluded a smaller trade for 5000 mt with a buyer in Nigeria at a lower price heard at $800/mt FOB, the sources said, but the specification is unclear and could be for coils with zinc coating not above 200 gms.
An eastern Indian-based mill has concluded a trade for 20,000 mt with an Oman-based trading firm at $820-830/mt FOB, the sources said.
“The return of buyers from the Gulf is a strong positive as the market may have bottomed out even though demand in other key destinations is still sluggish,” an official at a private mill said.
“Discounted sales in the African market are natural considering this is an emerging region for most Indian sellers and there are challenges in concluding deals. But most mills are attempting to develop newer markets considering that large-volume buying from the EU and Asian markets remains elusive,” he said.
